Strategic Asset Management PolicyMunicipal Asset Management Plans,2 and the guidelines within the...

of 14 CITY OF GUELPH CORPORATE POLICY AND PROCEDURE

POLICY Strategic Asset Management Policy

CATEGORY Corporate

AUTHORITY All Departments

APPROVED BY City Council

EFFECTIVE DATE May 07, 2018

REVISION DATE April 05, 2018

Alternative formats are available as per the Accessibility for Ontarians with Disabilities Act by contacting Daryush Esmaili at 519-822-1260 extension 2765.

1 TERMS AND DEFINITIONS For consistency, terminology in all official asset management documents shall be

consistent with ISO 55000:2014(E) – International Standard for Asset

Management1.

For the purposes of this document, the following definitions apply:

TERM DEFINITION

Asset An Item, thing or entity that has potential or actual value

to an organization.

Note: Value is the importance, worth, or usefulness of

something. Potential value is the value of the asset that is

contingent on the occurrence of stated assumptions.

Asset Management Coordinated activity of an organization to realize value

from assets.

1 ISO/IEC. (2014). ISO International Standard ISO/IEC 55000:2014(E) – Asset management – Overview, principles and terminology. Geneva, Switzerland: International

Organization for Standardization (ISO).


TERM DEFINITION

Asset Management

Plan

Documented information that specifies the activities,

resources, and timescales required for an individual asset,

or a grouping of assets, to achieve the organization’s

asset management objectives.

Asset Management

System

The people, processes, tools and other resources involved

in the delivery of asset management.

Asset System Set of assets that interact or are interrelated.

Corporate Asset

Management

The application of asset management principles at a

corporate level to maximize consistency among diverse

asset groups. Corporate asset management creates

efficiency by harmonizing service levels and business

processes wherever possible.

Lifecycle Stages involved in the management of an asset.

Level of Service Parameters or a combination of parameters, which reflect

social, political, environmental and economic outcomes

that the organization delivers.

2 BACKGROUND The City of Guelph is responsible for provision of a diverse array of services which

are dependent on over $4 billion in assets. An integral component of ensuring

reliable service is creating an effective approach to managing existing and future

municipal assets. Effective asset management aims to manage assets in a way that

balances levels of service, risk, and cost effectiveness throughout the entire asset

lifecycle. Ultimately, adopting effective and comprehensive asset management

strategies across the organization will support the long term sustainability and

efficiency while maintaining levels of service.


The City produced its first Corporate Asset Management Policy in 2013, which

detailed the City’s key objectives for asset management, and established a baseline

that Guelph has continued to build on. In the summer of 2016, the Corporate Asset

Management division was formed to coordinate the development and advancement

of the City’s Corporate Asset Management system.

3 POLICY STATEMENT This policy details the principles and general framework for a systematic and

coordinated approach to asset management in order to achieve the organization’s

asset management objectives, guided by the Corporate Administrative Plan 2016-

2018.

4 SCOPE OF THE ASSET MANAGEMENT SYSTEM

4.1 Components of the Asset Management System

The City’s asset management system can be categorized into the key processes and

resources shown within Figure 1. The asset management processes include:

Functional Processes: The processes involved in understanding and defining

requirements, and asset lifecycle management strategies; and

Enabling Processes/Resources: The supporting processes and resources

that make the functional processes possible.


Figure 1. The Asset Management Process

4.2 Key Documents in the Corporate Asset Management System

The Asset Management System will incorporate the development and

implementation of several documents. The key documents within the City’s asset

management system are depicted in Error! Reference source not found., and

described in sections 4.2.1 to 4.2.4.


Figure 2. Key Documents in the Asset Management System

4.2.1 Strategic Asset Management Policy

The Asset Management Policy shall guide the overall direction of the asset

management system, providing clear direction as to the appropriate focus and level

of asset management practice expected. It shall establish the key principles, overall

mission and goals for the program, and be guided by the Organizational Strategic

Plan and the Corporate Administrative Plan.

4.2.2 Asset Management Strategy

The Asset Management Strategy documents the intended approach by which the

assets and other resources will be used to achieve the agreed upon objectives

within the agree Policy framework. It provides clear direction, overall intentions and

rationale. In addition, the asset management strategy identifies the organizational

readiness to achieve the objectives, including identification of barriers and

appropriate implementation plans to overcome the barriers.

4.2.3 Corporate Asset Management Plan

The Corporate Asset Management Plan shall detail the intended asset management

programs at a corporate level to allow the City to understand and target service

levels and the asset portfolio’s capability to meet those requirements. This plan

shall be developed to meet the requirements of the Building Together – Guide for


Municipal Asset Management Plans,2 and the guidelines within the International

Infrastructure Management Manual, 2015.3

Asset management plans are also to be developed based on consideration of

principles outlined under section 3 of the Infrastructure for Jobs and Prosperity Act,

2014, and be informed by:

An understanding of current and future asset condition, needs and costs,

An understanding of risks and the City’s ability to manage risks relating to

assets, including disaster planning and any required contingency planning;

Accessibility standards and other related standards;

Changing demographics, including population growth or decline; and

Ontario’s land-use planning framework, including any relevant policy

statements issued under subsection 3 (1) of the Planning Act, any provincial

plans as defined in the Planning Act and the municipality’s official plan.

As part of asset management planning, the following considerations are to be

included:

The actions that may be required to address the vulnerabilities that may be

caused by climate change to the municipality’s infrastructure assets, in

respect of such matters as:

o Operations, such as increased maintenance schedules;

o Levels of service; and

o Lifecycle management.

The anticipated costs that could arise from the vulnerabilities described

above;

Adaptation opportunities that may be undertaken to manage the

vulnerabilities described above;

Mitigation approaches to climate change, such as greenhouse gas emission

reduction goals and targets; and

Disaster planning and contingency funding.

Assets in the asset management plan are not to be subject to a capitalization

threshold, and are to be included based upon judgement of whether the asset has

value to the organization. The capitalization threshold applied in the municipality’s

tangible capital asset policy is $10,000.

2 Infrastructure Ontario (2016) Building Together – Guide for Municipal Asset Management

Plans. Ottawa, Canada. Queen’s Printer of Ontario. 3 IPWEA (2015) International Infrastructure Management Manual. North Sydney, Australia.

IPWEA.


Asset management plans shall identify activities to be undertaken, with

consideration of the full lifecycle of assets, for at least the ten years following the

preparation of that plan or update. In addition, they will document key assumptions

made within the plan. Asset management plans are to be updated at no longer than

4 year intervals.

4.2.4 Asset Portfolio Management Plans

Asset Portfolio Management Plans shall be specific, targeted plans developed

through collaboration with the departments who manage each aspect of the asset

lifecycles and service. These plans shall further refine the Corporate Asset

Management Plan to allow a customized, targeted plan that best supports the daily

functions, service and demand levels, and anticipated needs for that asset system.

The asset system plans will detail budget requirements and projects that will feed

into the City’s overall budget.

4.2.5 Relationship between Asset Management Plans, Budgets and

Financial Plans

The outcomes and background data generate through the development of the asset

management plans shall form the basis for infrastructure-related long-term

financial plans. During the annual budgeting process, projects and funding levels

shall be reviewed against the background data and results of the asset

management plans. The City’s asset management planning should be aligned with

any of the following financial plans:

Financial plans related to the City’s water assets including any financial plans

prepared under the Safe Drinking Water Act, 2002.

Financial plans related to the City’s wastewater assets.

5 ASSET MANAGEMENT MISSION, GOALS AND

PRINCIPLES

5.1 Asset Management Mission

Our mission is to protect and enhance the quality of life in Guelph by making the

best possible decisions regarding our assets in a way that provides targeted levels

of service and manages risk in a cost-effective manner throughout the entire asset

lifecycle.

5.2 Asset Management Goals

Provide levels of service that meet expectations and ensure a high quality of

life for the community through:

o Defining levels of service in consultation with stakeholders;

o Evaluating and communicating the cost of providing the service; and

o Quantifying the impacts of decisions on service.


Managing risks through:

o Understanding risk exposure;

o Understanding potential vulnerabilities to climate change;

o Establishing the organization’s risk appetite;

o Developing risk management strategies;

o Implementing appropriate condition assessment, inspection, and

performance evaluation strategies for all relevant assets; and

o Implementing appropriate climate change adaptation and mitigation

strategies.

Demonstrating sustainable, full lifecycle planning through:

o Quantifying and tracking the full lifecycle costs for assets;

o Ensuring budgets are supported by asset management practices; and

o Bridging the gap between capital and operational budgets.

Ensuring accountability, transparency and engagement through:

o Documenting asset management business processes;

o Publicising asset management documents such that they are

accessible to all stakeholders; and

o Developing stakeholder engagement strategies to ensure that internal

and external stakeholders are able to participate, influence, and

contribute to asset management initiatives, where appropriate.

5.3 Guiding Principles

The City of Guelph strives to provide exceptional municipal service and value. Asset

management at the City is to be guided by the following principles:

Service excellence: Achieving quality and showing results.

Adopt a whole-organization, all asset approach to asset management that

holistically considers the interdependencies between asset systems and

services throughout their full lifecycle;

Meet and comply with all relevant legislation, regulatory and statutory

requirements and with other requirements to which the organization

subscribes;

Corporate asset management documents are derived from, and be consistent

with, the organizational strategic plan, council shared agenda, long-term

municipal goals, organizational policies, budgets, financial plans, and the

organization’s overall risk management framework;


Asset management documents are communicated and made available to all

relevant stakeholders, including contracted service providers, where there is

a requirement that these persons are made aware of their asset

management-related obligations; and

Approach asset management from a collaborative, cross-disciplinary

perspective while also regularly engaging with relevant stakeholders to

maximize value from the assets and services.

Provide opportunities for municipal residents and other interested parties to

provide input into the municipality’s asset management planning.

Coordinate planning for asset management, where municipal infrastructure

assets connect or are interrelated with those of other municipalities,

neighbouring municipalities or jointly-owned municipal bodies.

Financial stability: Managing our resources to achieve maximum public value.

Ensure that asset management principles are applied to tangible and

intangible assets, and that value is considered holistically, in aspects such as

financial, social (quality of life, community wellbeing, heritage) and

environmental.

Develop and implement an evidence-based, systematic approach to asset

management that is transparent and customer-centric;

Optimize asset decisions based on lowest lifecycle cost, acceptable risk levels

and desired levels of service to allow for long-term planning that will enhance

service and sustainability while also ensuring resilience and adaptability; and

Provide an annual update to Council on asset management planning

progress, factors affecting the ability to meet commitments outlined in the

plan, and a strategy to address any shortcomings.

Innovation: Modernizing our services and how we work.

Integrate asset data systems where possible to minimize duplication of effort

and improve overall information confidence;

Strive for asset management practices, processes and capabilities to be in-

line with current industry best practices;


Commitment to continual improvement in asset management, the asset

management system, asset management maturity, and asset management

performance;

Performance monitoring and benchmarking internally and against other

similar organizations;

Implement and periodically review asset management documents,

objectives, and requirements to ensure that they remain relevant and

consistent with the organizational plans and other relevant organizational

policies; and

Annual internal reviews and an independent audit of the asset management

system at no longer than 5 year intervals.

6 REVIEW PERIOD The policy is to be reviewed by the Asset Management Steering Committee

annually, and following any changes in regulatory requirements, or updates to the

Corporate Strategic Plan or Corporate Administrative Plan.

City Staff shall report to Council on asset management progress and on or before

July 1 in each year. The annual review must address:

The City’s progress in implementing its asset management plan;

Any factors impeding the City’s ability to implement its asset management

plan; and

A strategy to address the identified factors.

7 ROLES & RESPONSIBILITIES

7.1 Council

Approve the strategies and plans as proposed by the Corporate Asset

Management Division by a resolution passed by the City Council;

Serve a representatives of stakeholder and community needs; and

Approve funding for both capital and operating budgets associated with Asset

Management through the annual budget.


7.2 Executive Team and Executive Lead

Review and approve documents and strategies proposed by the Asset

Management Steering Committee, where the implications are organization-

wide or external;

Endorse every asset management plan and policy;

Participate in the process of aligning asset management strategies and plans

with organizational strategies and objectives; and

Communicate the vision of asset management at a corporate level,

encourage engagement with the processes, and provide the guidance

necessary to ensure alignment and integration across the organization.

7.3 Corporate Asset Management Steering Committee

Provide corporate support for asset management;

Coordinate financial, strategic planning, information technology and asset

management activity;

Establish policies and practices that ensure uniformity of approach across the

organization;

Encourage information sharing and collaboration across departments;

Provide a corporate pool of asset management expertise that can build

capability in areas of lower experience;

Provide input and direction to Corporate Asset Management work plans to

ensure consistency with other initiatives;

Establish and peer review asset management policies, practices, plans, and

other related documents;

Disseminate Steering Committee information within their department where

necessary;

Champion the asset management process within the respective department;

Ensure organization-wide accountability for achieving and reviewing

corporate asset management goals and objectives;


Coordinate with other related steering committees where required; and

Lead the effective implementation of corporate asset management initiatives.

7.4 Corporate Asset Management Division

Liaise with other departments in service areas relating to asset management,

including convening asset management teams (specific to each service area),

and ensuring project work is consistent with asset management objectives;

Liaise with external stakeholders in relation to asset management matters;

Develop an overall corporate asset management policy, strategy, and

confirm the implementation plan/resource requirements;

Coordinate the development of asset management plans and facilitate peer

reviews;

Coordinate asset management improvement programs including writing

briefs for asset management improvement projects and preparing,

monitoring and reporting on the overall asset management planning

budgets;

Carrying out selected asset management improvement tasks as appropriate;

Lead the development of asset inventories, condition assessments, risk

assessments and related asset management initiatives in line with industry

best practices;

Work with asset management information systems staff to ensure systems

development and functionality meets asset management needs; and

Continuous improvement of the City’s Asset Management capabilities.

7.5 Asset System Working Groups and Service Providers

Provide input on needs of department, current status of assets, and current

levels of service;

Support and comply with data collection requirements related to their areas

of expertise;


Participate in the development of the Asset Management Work Plans

pertaining to their areas of expertise; and

Participate in the regular review of all documentation, data, and asset

measurement tools to ensure continued relevance and applicability of

existing policies and practices as pertains to their area of expertise.

7.6 Residents, Stakeholders and Customers

Participate in public information sessions, and stakeholder engagement

initiatives, where possible;

Provide feedback related to levels of service, service experience, and service

expectations; and

Notify the City, via appropriate means, when service deficiencies or failures

are observed.

8 PERSONS RESPONSIBLE FOR ASSET MANAGEMENT

PLANNING

8.1 Executive Lead

Scott Stewart, C.E.T.,

Deputy Chief Administrative Officer

Infrastructure, Development and Enterprise Services

Phone: 519-822-1260, ext. 3445

Email: [email protected]

8.2 Corporate Asset Management Sponsor

Kealy Dedman, P.Eng.,

General Manager/City Engineer

Engineering and Capital Infrastructure Services Phone: 519-822-1260, ext. 2248


8.3 Corporate Asset Management

Daryush Esmaili, M.A.Sc., PMP.,

Manager of Corporate Asset and Project Management

Engineering and Capital Infrastructure Services

Phone: 519-822-1260 ext. 2765


mailto:[email protected]




9 CONTACT INFORMATION For more information about this policy, or questions related to asset management

at the City, please contact:

Daryush Esmaili

Manager of Corporate Asset and Project Management,

City of Guelph

1 Carden St, Guelph, ON, N1H 3A1

Phone: 519-822-1260 ext. 2765



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